Let's See if Earnings and Employment Keep the Momentum for the GBP - Forex News by FX Market Leaders

Let’s See if Earnings and Employment Keep the Momentum for the GBP

Posted Tuesday, September 10, 2019 by
Skerdian Meta • 1 min read

The GBP has been quite bearish in recent months, but last week we saw quite a reversal from below 1.20 as the sentiment improved after the UK parliament voted to pass a bill to make a no deal Brexit illegal. Yesterday the Queen passed the bill which now turns into a law.

As a result, GBP/USD has climbed nearly 500 pips so far. Although, the economic reports released from the UK yesterday also helped. The GDP increased by 0.3% in July, while manufacturing, which was expected to contract again for the third time in the last four months, also increased by 0.3%.

These figures eased some of the worries about a possible recession in the UK. Although, today we will get to see the UK manufacturing report. That includes the new jobs, the unemployment rate, which is expected to remain unchanged at 3.9%, and the average earnings index. Earnings have been surging, increasing by 3.7% 3M/Y. If they keep the pace or increase further, then some more nerves will be relaxed, which will help the GBP further.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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